Minimize the Bite of the 3.8% Net-Investment-Income Tax

By

Bill Bischoff

May 6, 2015 10:39 am ET

The net-investment-income tax—a 3.8% Medicare surtax on investment income—took effect in 2013. It can potentially hit anyone with consistently high income or with a big one-time shot of income or gain, say, from selling highly appreciated company stock.

After filing your 2014 Form 1040, you now have two years of exposure to this semi-new tax. So you may be ready to employ some strategies to stop, or at least slow, the bleeding for this year and beyond.